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Colin A. Houston & Associates, Inc. announces a new multiclient study ALPHA-OLEFINS - WORLD MARKETS, 2000-2010 and ALPHA-OLEFIN MARKET INTELLIGENCE DATABASE Consumption of linear alpha-olefins in direct end uses totaled 2.5 million tons in 2000 and is forecast to grow at an average rate of 6.6 percent/year to 2010. However, there are wide variations in growth rates among the various end uses, and the outlook for individual chain lengths ranges from a potentially severe shortage of octene-1 to significant surpluses of certain other chain lengths. There are also major differences in consumption patterns and growth rates from region to region. Alpha-olefins capacity has increased from 2.4 million tons/year in 1997 to 3.2 million tons/year by year-end 2001, and could reach 4.0 million tons/year by 2005, including both confirmed and potential new plants and expansions. Colin A. Houston & Associates, Inc. (CAHA) has completed a comprehensive new multiclient study of the global markets for alpha-olefins that analyzes supply and demand for alpha-olefins through 2010. The study profiles producers and quantifies and forecasts production by region and chain length to 2010. It includes a thorough investigation of 18 separate end uses for alpha-olefins, covering derivative producers and production, technology and trends, and it quantifies alpha-olefin consumption in each use by region and chain length annually for 2000 through 2005, and for 2010. In addition to the print version of the new study, a PDF version of all the key end use and summary tables is available online in an electronic database accessible to clients via an assigned user name and password. Details of this study and database, published in October 2001, are explained on the following pages. Please contact either Joel Houston, President or Marilyn Bradshaw, Vice President to discuss this valuable new program. CONTENTS Page Description of the Study 2 Table of Contents 5 Sample Tables 17 Qualifications & Personnel 27 Cost and Delivery/How to Subscribe 30 Contract 31

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Page 1: Alpha-Olefins - World Markets, 2000-2010€¦ · ALPHA-OLEFINS - WORLD MARKETS, 2000-2010 and ... and production, technology and ... New Surfactants Based on Alpha-Olefins I-34 Production

Colin A. Houston & Associates, Inc. announcesa new multiclient study

ALPHA-OLEFINS - WORLD MARKETS, 2000-2010

and

ALPHA-OLEFIN MARKET INTELLIGENCE DATABASE

Consumption of linear alpha-olefins in direct end uses totaled 2.5 million tons in2000 and is forecast to grow at an average rate of 6.6 percent/year to 2010. However,there are wide variations in growth rates among the various end uses, and the outlookfor individual chain lengths ranges from a potentially severe shortage of octene-1 tosignificant surpluses of certain other chain lengths. There are also major differences inconsumption patterns and growth rates from region to region.

Alpha-olefins capacity has increased from 2.4 million tons/year in 1997 to 3.2million tons/year by year-end 2001, and could reach 4.0 million tons/year by 2005,including both confirmed and potential new plants and expansions.

Colin A. Houston & Associates, Inc. (CAHA) has completed a comprehensivenew multiclient study of the global markets for alpha-olefins that analyzes supply anddemand for alpha-olefins through 2010. The study profiles producers and quantifiesand forecasts production by region and chain length to 2010. It includes a thoroughinvestigation of 18 separate end uses for alpha-olefins, covering derivative producersand production, technology and trends, and it quantifies alpha-olefin consumption ineach use by region and chain length annually for 2000 through 2005, and for 2010.

In addition to the print version of the new study, a PDF version of all the key enduse and summary tables is available online in an electronic database accessible toclients via an assigned user name and password. Details of this study and database,published in October 2001, are explained on the following pages. Please contact eitherJoel Houston, President or Marilyn Bradshaw, Vice President to discuss this valuablenew program.

CONTENTS

Page

Description of the Study 2Table of Contents 5Sample Tables 17Qualifications & Personnel 27Cost and Delivery/How to Subscribe 30Contract 31

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DESCRIPTION OF THE STUDY

For alpha-olefin producers, profitability depends on finding and winning the rightmix of customers while optimizing alpha-olefin production and disposition by chainlength. A major purpose of CAHA’s study is to provide comprehensive data andanalysis that will support the development of successful alpha-olefin production, salesand marketing strategies.

For alpha-olefin customers, it is imperative to understand the short-term andlong-term availability of individual chain lengths and the competitive position andpotential strategies of their suppliers. CAHA’s study profiles each producer andcomments on expansion plans and new suppliers, and it explains in detail thesupply/demand outlook for each chain length by region.

The Alpha-Olefin Market Intelligence Database, containing all the key tables fromthe study, is available to subscribers on the Internet at www.alpha-olefins.com/ao. Aconfidential username and password are assigned when the study is purchased.

ALPHA-OLEFIN SUPPLY

CPChem brought a new plant on stream in Texas in 2000; BP started up its newCanadian plant in 2001; and Shell brought a new plant on stream in Louisiana in 2002.All of the other new alpha-olefin plants being built or under consideration will be locatedin the Middle East, Asia and Africa.

By 2005, several of the existing producers will have added capacity, and therewill be two new producers — SABIC, producing a full range of alpha-olefins, and Q-Chem, producing hexene-1. Several additional alpha-olefin plants are underconsideration, but have not yet received final approval. These include new hexene-1,octene-1 and multipurpose units planned by Sasol and a joint venture plant proposedby Idemitsu and Formosa Plastics.

CAHA’s study profiles each of the current, new and potential producers,providing details of their capacities and expansion plans, production by chain length,technology, product specifications and integration including captive vs merchant use. Italso details alpha-olefin technology available for license.

ALPHA-OLEFIN DEMAND

CAHA’s comprehensive 690-page study analyzes nineteen individual end usemarkets and reports alpha-olefin consumption by chain length and by region for each.

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Overall growth in demand for alpha-olefins is forecast to average more than 6percent per year between 2000 and 2010. The largest end use, polyolefincomomoners, accounts for over 50 percent of alpha-olefin consumption, and growth isexpected to average 8.6 percent/year through 2010. CAHA’s study breaks out alpha-olefin consumption by region, by major polyolefin type and by chain length, anddiscusses the supply/demand outlook for butene-1, hexene-1 and octene-1.

During the 1990s, the polyalphaolefin (PAO) market was limited by insufficientsupplies of decene-1, but the situation has changed. Group III base oils arechallenging PAO on a cost performance basis in many lubricant applications. Based onnumerous interviews with alpha-olefin and PAO producers, and synlube suppliers andusers, CAHA’s study quantifies the effect of these developments and forecastsconsumption of alpha-olefins by chain length in synthetic lubricants.

12 14The markets for C and C alpha-olefins have been tight at times in recentyears, but longer term, their growth rates are not expected to match those of the lowerchain lengths. However, their outlook varies by region, and some producers will bebetter-positioned than others to take advantage of higher-growth market opportunities.These opportunities are identified in the study.

The phenomenal growth in the use of internal and alpha-olefins in oilfield drilling

16 18fluids has tightened the market for C and C alpha-olefins, but the consumption andoutlook for these products varies by region. CAHA’s study examines the use of internaland alpha-olefins by chain length in this dynamic market.

METHODOLOGY

CAHA’s extensive files, data, knowledge and expertise on alpha-olefins gainedthrough 20 years of consulting experience in alpha-olefins provided a unique foundationfor this study. New research undertaken during the period of September 2000 throughSeptember 2001 included scores of interviews with knowledgeable contacts at morethan 110 companies and organizations at over 160 locations on five continents.

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TABLE OF CONTENTS

Page

PREFACE ii

EXECUTIVE SUMMARY iii

TABLE OF CONTENTS xxvi

List of Tables xxxix

List of Figures lii

I. REGIONAL ALPHA-OLEFIN MARKETS I-1 - I-63

W orld Overview I-1

Capacity I-1

North America I-5

W est Europe I-5

Asia I-6

Other Regions I-6

On-Purpose Butene-1 I-7

Production I-8

Production by Chain Length I-9

Consumption I-10

Polyolefin Comonomers I-12

Detergent Alcohols I-15

Linear Alkylbenzene I-16

Alkyldimethylamines I-18

Alpha-Olefin Sulfonates I-19

Plasticizer Alcohols I-21

Synthetic Lubricants I-22

Synthetic Acids I-24

Petroleum Additives I-25

Alkenyl Succinic Anhydride I-27

Oilfield Chemicals I-29

Miscellaneous End Uses I-32

Potential Market Factors I-34

New Surfactants Based on Alpha-Olefins I-34

Production of Alpha-Olefins From Natural Glycerides I-34

Production of Octene-1 by Butene-1 Dimerization I-36

New Polyolefin Catalysts That Reduce

Comonomer Levels I-36

North America I-37

Producers and Capacities I-37

BP I-37

Chevron Phillips I-38

Shell I-38

Production I-38

Consumption I-39

Latin America I-42

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Producers and Capacities I-42

Production I-42

Consumption I-42

W est Europe I-45

Producers and Capacities I-45

BP I-45

Shell I-46

Production I-46

Consumption I-47

Asia I-50

Producers and Capacities I-50

Idemitsu I-52

Mitsubishi I-52

Production I-52

Consumption I-53

Other Regions I-56

Producers and Capacities I-56

East Europe I-57

Middle East/Africa I-58

Production I-59

Consumption I-60

II. PRODUCERS OF ALPHA-OLEFINS II-1 - II-79

Introduction II-1

Refinery Stream Butene-1 II-6

Technology II-6

Producers II-7

BP II-13

Plant Locations and Capacities II-13

Historical and Future Expansions II-13

Production Technology II-14

Production by Chain Length II-19

Integration II-21

Feedstock Situation II-21

Captive Versus Merchant Usage II-21

Chevron Phillips Chemical Company II-23

Plant Locations and Capacities II-23

Recent and Future Expansions II-24

Production Technology II-24

Production by Chain Length II-28

Integration II-29

Feedstock Situation II-29

Captive Versus Merchant Usage II-29

Idemitsu Petrochemical Co. Ltd. II-32

Plant Locations and Capacities II-32

Future Expansion Plans II-32

Production Technology II-33

Integration II-35

Feedstock Situation II-35

Captive Versus Merchant Usage II-35

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Mitsubishi Chemical Corporation II-37

Plant Locations and Capacities II-37

Recent and Future Expansions II-37

Production Technology II-37

Integration II-41

Feedstock Situation II-41

Captive Versus Merchant Usage II-41

Nizhnekamskneftekhim II-43

Plant Locations and Capacity II-43

Production Technology II-43

Product Specifications II-45

Integration II-46

Feedstock Situation II-46

Captive Versus Merchant Usage II-46

Sasol Alpha Olefins II-47

Plant Locations and Capacities II-48

Hexene and Pentene II-48

Octene II-49

Other Chain Lengths II-49

Production Technology II-50

Production by Chain Length II-52

Product Specifications II-52

Integration II-53

Captive Versus Merchant Usage II-54

Shell Chemicals II-55

Plant Locations and Capacities II-55

Recent and Future Expansions II-55

Production Technology II-56

Production by Chain Length II-64

Integration II-66

Feedstock Situation II-66

Captive Versus Merchant Usage II-66

Spolana A.S. II-68

Plant Locations and Capacities II-69

Production Technology II-69

Production II-70

Integration II-71

Feedstock Situation II-71

Captive Versus Merchant Usage II-72

New and Potential Producers II-73

SABIC II-73

Institut Français du Pétrole II-74

UOP II-75

CONDEA Vista (Sasol) II-76

Dow II-76

ExxonMobil II-77

Godrej II-78

Henkel II-78

III. END USE MARKETS FOR ALPHA-OLEFINS III-1 - III-10

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Summary III-1

Chain Lengths III-1

Polyolefins III-1

Surfactants and Intermediates III-1

Plasticizer Alcohols III-1

Oilfield Chemicals III-2

IV. POLYOLEFIN COMONOMERS IV-1 - IV-136

Introduction IV-1

Polyethylene Technology IV-3

Process Types IV-3

Polymerization in Solution Phase IV-3

Polymerization in Dilute Slurry Phase IV-4

Polymerization on Solids Dispersed in Gas Phase IV-5

Catalyst Technology IV-6

Ziegler-Natta Catalysts IV-6

Metallocene Catalysts IV-8

Other Single-Site Catalysts, Coordination Compounds

And Chelates IV-11

Hybrid Catalysts IV-13

New Process/Catalyst Technologies IV-13

Bimodal Processes IV-13

Polyethylene Technology Available For License IV-14

Intermaterial Competition IV-18

Introduction IV-18

Metallocene Catalyzed LLDPE IV-19

Non-Metallocene SSC-based LLDPE Resins IV-19

Plastomers IV-19

Polyolefin Elastomers IV-20

Other New Copolymer Technology IV-20

Intercompetition by Major Application IV-21

Conventional PE Copolymers IV-21

Conventional and SSC-based PE Intercompetition IV-23

VLDPE IV-28

Metallocene PE vs Other Polymers IV-28

Property Comparison IV-29

Polyolefin Copolymer Producers and Capacities IV-31

Notes For Regional Tables IV-34

North America IV-35

Atofina IV-36

Basell IV-36

Chevron Phillips IV-36

Dow IV-36

DuPont Dow Elastomers IV-37

Eastman IV-37

Equistar IV-37

ExxonMobil IV-37

Formosa IV-38

Huntsman IV-38

Nova IV-38

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Pemex IV-38

Petromont IV-38

Solvay IV-39

Ticona IV-39

Union Carbide IV-39

W estlake IV-39

Latin America IV-44

Argentina IV-45

Brazil IV-45

Chile IV-46

Venezuela IV-46

W est Europe IV-50

Atofina IV-51

Basell IV-52

Borealis IV-52

BP IV-53

CIPN IV-53

Dex Plastomers IV-54

Dow IV-54

DSM IV-54

Enichem IV-55

Polimeri Europa IV-55

Repsol IV-55

Solvay IV-55

Ticona IV-56

Asia IV-61

Japan IV-61

South Korea IV-65

China IV-67

India IV-71

Other Countries IV-74

Other Regions IV-88

East Europe IV-88

Middle East IV-91

Africa IV-95

Markets IV-103

W orld Summary IV-103

HDPE IV-105

LLDPE IV-107

VLDPE/Plastomers IV-109

Polyolefin Elastomers IV-111

Polypropylene Multipolymers IV-112

North America IV-114

HDPE IV-115

LLDPE IV-116

VLDPE/Plastomers IV-117

Polyolefin Elastomers IV-118

Latin America IV-119

HDPE IV-120

LLDPE IV-121

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VLDPE/Plastomers IV-122

Polyolefin Elastomers IV-122

W est Europe IV-123

HDPE IV-125

LLDPE IV-126

VLDPE/Plastomers IV-127

Polyolefin Elastomers IV-128

Asia IV-128

HDPE IV-130

LLDPE IV-131

VLDPE/Plastomers IV-132

Polyolefin Elastomers IV-133

Other Regions IV-133

HDPE IV-135

LLDPE IV-135

VLDPE/Plastomers and Polyolefin Elastomers IV-136

V. SURFACTANTS AND INTERMEDIATES V-1 - V-105

Introduction V-1

Detergent Alcohols V-2

Introduction V-2

Sources and Technologies V-3

Oleochemical Alcohol Manufacturing Processes V-5

Synthetic-Based Alcohol Manufacturing Processes V-11

Products V-12

W orld Market Summary V-13

North America V-16

Producers and Capacities V-16

Production V-21

Alpha-Olefin Demand V-21

W est Europe V-22

Producers and Capacities V-22

Production V-28

Alpha-Olefin Demand V-28

Asia V-29

Producers and Capacities V-29

Production V-37

Alpha-Olefin Demand V-38

Other Regions V-38

Production V-40

Alpha-Olefin Demand V-41

Linear Alkylbenzene V-42

Introduction V-42

Sources and Technologies V-42

Starting Materials and Processes V-43

Role of Internal and Alpha-Olefins in the

Production of LAB V-45

LAB Compositions V-48

Developments in New Technology V-50

W orld Market Summary V-51

North America V-54

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Producers and Capacities V-54

Production V-56

Alpha-Olefin Demand V-56

Latin America V-57

Producers and Capacities V-57

Production V-59

Alpha-Olefin Demand by Chain Length V-59

W est Europe V-60

Producers and Capacities V-60

Production V-62

Alpha-Olefin Demand by Chain Length V-62

Asia V-62

Producers and Capacities V-63

Production V-68

Alpha-Olefin Demand by Chain Length V-68

Other Regions V-69

Producers and Capacities V-69

Production V-72

Alpha-Olefin Demand by Chain Length V-73

Alkyldimethylamines V-74

Sources and Technology V-74

From Alpha-Olefin Via Alkyl Bromide V-74

From Fatty Acid via Fatty Acid Nitrile V-74

From Alcohol via Alkyl Chloride V-75

From Alcohol via Direct Amination V-75

Properties and Applications V-76

W orld Market Summary V-78

Capacity V-78

Production V-79

Utilization V-81

Alpha-Olefin Demand V-81

North America V-83

Producers and Capacities V-83

Production V-85

Alpha-Olefin Demand V-86

Latin America V-87

Producers and Capacities V-87

Production V-87

Alpha-Olefin Demand V-87

W est Europe V-88

Producers and Capacities V-88

Production V-90

Alpha-Olefin Demand V-91

Asia V-91

Producers and Capacities V-91

Production V-93

Alpha-Olefin Demand V-93

Other Regions V-93

Alpha-Olefin Sulfonates V-94

Introduction V-94

Technology V-94

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W orld Market Summary V-95

North America V-96

Producers and Capacities V-96

Production V-97

Alpha-Olefin Demand V-98

Latin America V-99

W est Europe V-99

Producers and Capacities V-99

Production V-100

Alpha-Olefin Demand V-101

Asia V-101

Producers and Capacities V-102

Production V-103

Alpha-Olefin Demand V-104

Other Regions V-105

Alpha-Olefin Demand Summary V-105

VI. PLASTICIZER ALCOHOLS VI-1 - VI-61

Introduction VI-1

Technology VI-3

Oxo Process VI-3

Products VI-5

2-Ethylhexanol VI-5

Isoalcohols VI-7

Linear Alcohols VI-8

Plasticizers VI-11

Introduction VI-11

Technology VI-11

Phthalate Plasticizers VI-15

Non-Phthalate Plasticizers VI-18

Environmental and Health Issues VI-19

Markets VI-23

W orld Summary VI-23

Plasticizer Alcohols VI-23

Linear Plasticizer Alcohol Production VI-26

Alpha-Olefin Demand VI-27

North America VI-28

Producers and Capacities VI-29

Production VI-34

Alpha-Olefin Demand VI-36

Latin America VI-37

Producers and Capacities VI-38

Production VI-39

Alpha-Olefin Demand VI-40

W est Europe VI-40

Producers and Capacities VI-41

Production VI-47

Alpha-Olefin Demand VI-49

Asia VI-50

Producers and Capacities VI-51

Production VI-56

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Alpha-Olefin Demand VI-57

Other Regions VI-58

Producers and Capacities VI-58

Production VI-60

Alpha-Olefin Demand VI-61

VII. SYNTHETIC LUBRICANTS VII-1 - VII-38

Introduction VII-1

Lubricants VII-1

Synthetic Lubricants VII-1

Hydroprocessed Base Oils VII-3

Technology VII-5

Major Lubricants VII-5

Polyalphaolefins VII-5

Polyol Esters VII-6

Polyalkylene Glycols VII-7

Dibasic Acid Esters VII-7

Phosphate Esters VII-7

Alkylated Aromatics VII-7

Hydroprocessed Base Oils VII-8

Comparison of Lubricant Types and Properties VII-8

Finished Lubricant Markets VII-13

W orld Lubricant Market VII-16

Producers VII-16

Demand VII-16

Polyalphaolefin Lubricants VII-18

Other Lubricants VII-21

Polyol Esters VII-21

Polymer Esters VII-22

Polyalphaolefin Markets by Region VII-23

W orld Summary VII-23

PAO Producers and Capacities VII-24

Production VII-27

Alpha-Olefin Demand VII-28

North America VII-30

Latin America VII-32

W est Europe VII-32

Asia VII-35

Other Regions VII-38

VIII. SYNTHETIC ACIDS VIII-1 - VIII-27

Introduction VIII-1

Technology VIII-2

Commercial Processes VIII-2

Oxo Process VIII-3

End Uses VIII-4

Polyol Esters VIII-4

Bleach Activators VIII-8

Plasticizers VIII-11

Other End Uses VIII-12

5, 7, 9Alpha-Olefin Derivatives (C ) vs. Fatty Acids From Other

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Sources VIII-12

Markets VIII-14

W orld Summary VIII-14

North America VIII-14

Producers and Capacities VIII-14

Production VIII-16

Consumption VIII-16

Alpha-Olefin Demand VIII-20

Latin America VIII-20

W est Europe VIII-21

Producers and Capacities VIII-21

Production VIII-22

Consumption VIII-23

Alpha-Olefin Demand VIII-25

Asia VIII-26

Other Regions VIII-26

Alpha-Olefin Demand Summary VIII-26

IX. PETROLEUM ADDITIVES IX-1 -IX-34

Introduction IX-1

Additive Function IX-3

The Petroleum Additive Industry IX-6

Technology IX-10

Lube Oil Performance IX-10

Additives IX-10

Alpha-Olefin Sulfonates IX-12

Alkylbenzene Sulfonates IX-12

Alkyl Phenates IX-14

Alkyl Salicylates IX-15

Chlorinated Alpha-Olefins IX-15

Sulfurized and Chlorosulfurized Alpha-Olefins IX-16

Alkenyl Succinic Acids/Anhydrides IX-17

Fuel Additives IX-18

Summary IX-18

Markets IX-21

Lubricant Base Oils IX-21

Petroleum Additive Market IX-23

Global Alpha-Olefin Demand IX-24

North America IX-27

Latin America IX-29

W est Europe IX-29

Asia IX-31

Other Regions IX-33

X. ALKENYL SUCCINIC ANHYDRIDE X-1 - X-17

Introduction X-1

Technology X-2

Markets X-3

North America X-4

Producers X-4

Production X-6

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Consumption X-6

Alpha-Olefin Demand X-9

Latin America X-10

W est Europe X-11

Producers X-11

Production X-12

Consumption X-13

Alpha-Olefin Demand X-15

Asia X-16

Producers and Production X-16

Consumption X-16

Alpha-Olefin Demand X-16

Other Regions X-17

Alpha-Olefin Demand Summary X-17

XI. OILFIELD CHEMICALS XI-1 - XI-24

Introduction XI-1

Oil Industry XI-2

Oilfield Chemical Companies XI-2

Technology XI-4

Drilling Fluids XI-4

Enhanced Oil Recovery XI-8

Drag Reducers XI-9

Pour Point Depressants XI-9

Markets XI-11

W orld Summary XI-11

North America XI-11

Producers XI-11

Utilization XI-13

Alpha-Olefin Demand XI-14

Latin America XI-15

Producers XI-15

Utilization XI-16

Alpha-Olefin Demand XI-17

W est Europe XI-17

Producers XI-17

Utilization XI-18

Alpha-Olefin Demand XI-19

Asia XI-19

Producers XI-19

Utilization XI-19

Alpha-Olefin Demand XI-20

Other Regions XI-20

Producers XI-20

Utilization XI-21

Alpha-Olefin Demand XI-22

Alpha-Olefin Demand Summary XI-22

XII. MISCELLANEOUS END USES XII-1 - XII-65

Introduction XII-1

Metalworking Fluids and Additives XII-3

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Introduction XII-3

Metalworking Fluids Technology XII-5

Metalworking Fluids by Process XII-6

Removal Fluids XII-6

Forming Fluids XII-7

Treating Fluids XII-7

Protecting Fluids XII-8

Metalworking Fluid Product Classes XII-8

Straight Oils XII-9

Soluble (Emulsifiable) Oils XII-10

Semi-Synthetics (Semichemical) XII-11

Synthetics (Chemicals) XII-12

Metalworking Additives XII-13

Additive Types XII-14

Alpha-Olefin Derived Additives XII-15

Neat Alpha-Olefins XII-18

Metalworking Fluid Market XII-19

Metalworking Fluid Industry XII-21

Alpha-Olefin Demand XII-24

North America XII-26

W est Europe XII-27

Asia XII-28

Other Regions XII-29

Epoxides XII-30

Technology XII-30

Producers XII-31

Production XII-32

Markets XII-33

Alpha-Olefin Demand XII-34

Mercaptans XII-36

Technology XII-36

Producers XII-37

Production XII-38

Markets XII-38

Alpha-Olefin Demand XII-39

High Molecular W eight Alpha-Olefin W axes XII-41

Technology XII-41

Producers XII-41

Production XII-42

Markets XII-43

North America XII-43

Asia XII-43

Other Region XII-44

Alpha-Olefin Demand XII-44

Polybutene-1 XII-46

Technology XII-46

Producers XII-46

Production XII-47

Markets XII-48

Alpha-Olefin Demand XII-49

Leather XII-51

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Table of Contents (continued)

Page

16

Technology XII-51

Producers XII-51

Markets XII-53

Alpha-Olefin Demand XII-54

Amyl Alcohol XII-56

Technology XII-56

Producers XII-56

Production XII-57

Markets XII-58

Alpha-Olefin Demand XII-59

Miscellaneous Other XII-61

Diphenyl Oxide Disulfonates XII-61

Technology XII-61

Producers XII-61

Markets XII-62

Alpha-Olefin Demand XII-62

Polydecenes XII-62

Technology XII-63

Producers XII-63

Markets XII-63

Alpha-Olefin Demand XII-64

Other and Unspecified XII-64

Alpha-Olefin Demand Summary XII-65

XIII. APPENDIX XIII-1 - XIII-8

List of Abbreviations XIII-1

List of Contacts XIII-5

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SAMPLE TABLES

Table I-5

W ORLD - ALPHA-OLEFIN PRODUCTION BY REGION, 2000-2010

(thousand tons)

Region 2000 2001 2002 2003 2004 2005 2010

AAGR %

2000-2010

North America

W est Europe

Asia

Other Regions

TOTAL

Table I-6

W ORLD - ALPHA-OLEFIN PRODUCTION BY CHAIN LENGTH, 2000-2010

(thousand tons)

Chain Length 2000 2001 2002 2003 2004 2005 2010

AAGR %

2000-2010

4C

6C

8C

10C

12C

14C

16C

18C

20+C

TOTAL

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18

Table I-7

W ORLD - ALPHA-OLEFIN CONSUMPTION IN ALL APPLICATIONS, 2000-2010

(thousand tons)

2000 2001 2002 2003 2004 2005 2010

AAGR%

2000-2010

POLYOLEFIN COMONOMERS

HDPE

LLDPE

VLDPE/Plastomers

Elastomers

Polypropylene Multipolymers

Subtotal

SURFACTANTS AND INTERMEDIATES

Detergent Alcohols

Linear Alkylbenzene

Alkyldimethylamines

Alpha-olefin Sulfonates

Subtotal

Plasticizer Alcohols

Synthetic Lubricants

Synthetic Acids

Petroleum Additives

Alkenyl Succinic Anhydride

Oilfield Chemicals

Miscellaneous End Uses

GRAND TOTAL

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19

Table II-22

NIZHNEKAMSKNEFTEKHIM - ALPHA-OLEFIN

PRODUCTION BY CHAIN LENGTH, 2000

(thousand tons)

Carbon

Chain Length Production

Percent of Total

Production

4C

6C

8C

10C

12C

14C

16C

18C

20+C

TOTAL

Table II-37

SABIC - POTENTIAL ALPHA-OLEFIN CAPACITY

BY CHAIN LENGTH

(thousand tons)

Carbon

Chain Length Capacity

Percent of Total

Capacity

4C

6C

8C

10C

12-18C

20+C

TOTAL

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20

Table III-7

W ORLD TOTAL - ALPHA-OLEFIN END USE CONSUMPTION BY CHAIN LENGTH, 2005

(thousand tons)

4 6 8 10 12 14 16 18 20+End Use C C C C C C C C C TOTAL

POLYOLEFIN COMONOMERS

HDPE

LLDPE

VLDPE/Plastomers

Elastomers

Polypropylene Multipolymers

Subtotal

SURFACTANTS AND INTERMEDIATES

Detergent Alcohols

Linear Alkylbenzene

Alkyldimethylamines

Alpha-olefin Sulfonates

Subtotal

Plasticizer Alcohols

Synthetic Lubricants

Synthetic Acids

Petroleum Additives

Alkenyl Succinic Anhydride

Oilfield Chemicals

Miscellaneous End Uses

GRAND TOTAL

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21

Table IV-45

W ORLD - ALPHA-OLEFIN DEMAND FOR HDPE PRODUCTION BY REGION, 2000-2010

(thousand tons)

2000 2001 2002 2003 2004 2005 2010

AAGR%

2000-2010

North America

Latin America

W est Europe

Asia

Other Regions

TOTAL

Table IV-64

LATIN AMERICA - ALPHA-OLEFIN DEMAND FOR LLDPEa

PRODUCTION BY CHAIN LENGTH, 2000-2010

(thousand tons)

Chain

Length 2000 2001 2002 2003 2004 2005 2010

AAGR%

2000-2010

4 C

6 C

8 C

TOTAL

Excluding VLDPE, Plastomers and Elastomers.a

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Table V-43

W ORLD - ALKYLDIMETHYLAMINE PRODUCTION BY SOURCE, 2000-2010

(thousand tons)

Process 2000 2001 2002 2003 2004 2005 2010

AAGR %

2000-2010

from olefin

from alcohol

from acid

TOTAL

Table V-65

ASIA - AOS PRODUCTION BY CHAIN LENGTH, 2000-2010

(thousand tons)

Chain

Length 2000 2001 2002 2003 2004 2005 2010

AAGR %

2000-2010

14C

16C

18C

TOTAL

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23

Table VI-23

NORTH AMERICA - ALPHA-OLEFIN DEMAND FOR PLASTICIZER RANGE

ALCOHOL PRODUCTION BY CHAIN LENGTH, 2000-2010

(thousand tons)

Chain

Length 2000 2001 2002 2003 2004 2005 2010

AAGR%

2000-2010

6C

8C

10C

TOTAL

Table VII-26

W EST EUROPE - ALPHA-OLEFIN DEMAND FOR POLYALPHAOLEFIN

PRODUCTION BY CHAIN LENGTH, 2000-2010

(thousand tons)

Chain

Length 2000 2001 2002 2003 2004 2005 2010

AAGR %

2000-2010

8C

10C

12C

TOTAL

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24

Table VIII-11

5 7 9NORTH AMERICA - CONSUMPTION OF LINEAR C , C , AND C ACID

FROM ALL SOURCES BY END USE, 2000-2010

(thousand tons)

End Use 2000 2001 2002 2003 2004 2005 2010

AAGR %

2000-2010

Synthetic Lubricants

NOBS Production

PVB Production

Other

TOTAL

Table IX-15

ASIA - ALPHA-OLEFIN DEMAND FOR PETROLEUM

ADDITIVE PRODUCTION BY CHAIN LENGTH, 2000-2010

(thousand tons)

Chain

Length 2000 2001 2002 2003 2004 2005 2010

AAGR %

2000-2010

12C

14C

16C

18C

20+C

TOTAL

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Table X-11

W EST EUROPE - PRODUCTION OF ALPHA-OLEFIN DERIVED ASA

BY CHAIN LENGTH, 2000-2010

(thousand tons)

Chain Length 2000 2001 2002 2003 2004 2005 2010

AAGR %

2000-2010

8C

16C

18C

20+C

TOTAL

Table XI-7

NORTH AMERICA - INTERNAL AND ALPHA-OLEFIN DEMAND FOR

OILFIELD USES BY CHAIN LENGTH, 2000-2010

(thousand tons)

Chain Length 2000 2001 2002 2003 2004 2005 2010

AAGR %

2000-2010

6C

8C

10C

14C

16C

18C

20+C

TOTAL

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Table XII-1

W ORLD - ALPHA-OLEFIN DEMAND FOR MISCELLANEOUS END USES, 2000-2010

(thousand tons)

End Use 2000 2001 2002 2003 2004 2005 2010

AAGR %

2000-2010

Metalworking

Epoxides

Mercaptans

HMW W axes

Polybutene-1

Leather

Amyl Alcohol

Misc. Other

TOTAL

Table XII-15

ASIA - ALPHA-OLEFIN DEMAND FOR METALW ORKING FLUIDS

AND ADDITIVES BY CHAIN LENGTH, 2000-2010

(tons)

Chain

Length 2000 2001 2002 2003 2004 2005 2010

AAGR %

2000-2010

10C

12C

14C

16C

18C

TOTAL

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27

QUALIFICATIONS AND PERSONNEL

Colin A. Houston & Associates Inc. (CAHA) was founded in 1971 to provideconsulting services to the chemical industry worldwide. The primary area of expertisewas and continues to be surfactants: raw materials, intermediates, major surfactants,and the surfactant-consuming industries. Other areas of activity include: a variety ofindustry studies on such topics as oilfield chemicals, detergent builders, ingredients forpersonal care products, and bleaching agents; engineering studies such as a worldwidestudy of glycerine evaporation plants with recommendations for improved efficiency; aworld study of the state of the art in spray-drying detergents; contracts with the U.S.Government to develop industry effluent guidelines; and business strategy andacquisition studies.

CAHA has been studying alpha-olefin markets for most of its 25 year history. In1980, CAHA was commissioned to undertake a major proprietary study of NorthAmerican and West European alpha-olefin markets. In 1988, CAHA published its firstworld multiclient study on alpha-olefins. A second comprehensive study was completedin 1994. In addition, since 1989 CAHA has published a monthly alpha-olefin newslettercovering pricing and market developments for alpha-olefins and for polyolefins andother end uses for alpha-olefins.

The project team approach utilized by CAHA includes a core of senior andtechnical professionals augmented by expert consultant associates. The following briefsynopses present the staff and consultants who carried out the study, ALPHA-OLEFINS - WORLD MARKETS, 2000-2010 and ALPHA-OLEFIN MARKETINTELLIGENCE DATABASE.

Marilyn L. Bradshaw, Vice President,was the project leader for ALPHA-OLEFINS - WORLD MARKETS, 2000-2010 AND

ALPHA-OLEFIN MARKET INTELLIGENCE DATABASE. She is also the authorand editor of CAHA’s monthly alpha-olefin newsletter, and provides consultationto clients on alpha-olefins. Ms. Bradshaw was also the project leader for POLY-OLEFIN COMONOMERS - WORLD MARKETS, 1995-2005 and ALPHA-OLEFINS - WORLD MARKETS, 1990-2002. Other recent multiclient studies shehas directed include U.S. I&I CLEANING PRODUCTS - SURFACTANTSUPPLIERS AND CUSTOMERS, and INDUSTRIAL APPLICATIONS OFSURFACTANTS - NORTH AMERICAN FORECAST TO 2010. Since joiningCAHA in 1980, she has also been the project leader for numerous proprietaryprojects. Ms. Bradshaw has a B.A. from Finch College and an economics andmanagement certificate from Manhattanville College. She is a committee chairand former director of CDMA and a member of ECMRA.

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Joel H. Houston, President,

authored the Detergent Alcohols section of ALPHA-OLEFINS - WORLD MARKETS,

2000-2010 AND ALPHA-OLEFIN MARKET INTELLIGENCE DATABASE. In

addition, Mr. Houston was the project leader for numerous multiclient studies

including HIGHER ALCOHOLS: MARKET FORECAST TO 2010, SURFACTANTS

FOR EMERGING MARKETS IN ASIA/PACIFIC, 1996-2010, OPPORTUNITIES IN

PERFORMANCE SURFACTANTS IN THE U.S., SURFACTANTS FOR

CONSUMER PRODUCTS - NORTH AMERICAN FORECAST TO 2008, and

DETERGENT ALKYLATES - WORLD MARKETS, 1992-2005. He has guided

CAHA's research in oleochemicals since 1980, and in detergents since 1987. Mr.

Houston has extensive experience in projects for consumer products, has presented

papers at CMRA, ECMRA and CSMA meetings, and is the editor of CAHA's global

detergent newsletter, AGGLOMERATIONS. He is a member of CDMA, AOCS and

ASTM.

H. James Bigalow, Senior Research Associate,

authored several sections of ALPHA-OLEFINS - WORLD MARKETS, 2000-2010

AND ALPHA-OLEFIN MARKET INTELLIGENCE DATABASE. In addition he has

contributed to numerous multiclient studies including INDUSTRIAL APPLICATIONS

OF SURFACTANTS - NORTH AMERICAN FORECAST TO 2010, SURFACTANTS

FOR EMERGING MARKETS IN ASIA/PACIFIC, 1995-2010, DETERGENT

ALKYLATES - WORLD MARKETS, 1995-2010 and SURFACTANTS FOR

CONSUMER PRODUCTS - NORTH AMERICAN FORECAST TO 2008. Mr.

Bigalow has also worked on proprietary detergent and surfactant studies. Mr.

Bigalow has over 20 years experience as a senior marketing research executive in

the chemical industry. He has conducted successful business analysis projects

which have included financial evaluations of businesses and acquisition candidates,

identifying current and future markets for new and existing products, and product

development and usage. Additional experience has included economic and sales

forecasting, strategic planning, proprietary market research projects, benchmarking,

and product safety. He is a member of the CDMA, the Society of Competitive

Intelligence Professionals (SCIP), ACS and the Chemical Marketing and Economics

Division of the ACS. Mr. Bigalow holds an M.S. Industrial Administration, Krannert

School of Management, Purdue University and a B.S. degree in Chemistry, Denison

University.

Mack Hunt, Senior Research Consultantauthored the Synthetic Lubricants, Petroleum Additives and Metalworking Fluidssections of ALPHA-OLEFINS - WORLD MARKETS, 2000-2010 AND ALPHA-

OLEFIN MARKET INTELLIGENCE DATABASE. He has over 35 years ofexperience in the creation, synthesis, development, manufacture andmanagement of fuel and lubricating oil additives. Mr. Hunt is an internationallyknow expert in motor oil detergents and has authored or co-authored 53 U.S.patents and many foreign patents. He authored U.S. GASOLINE DETERGENTADDITIVES, 1997-2004 and the U.S. portion of GASOLINE DETERGENTADDITIVES - UNITED STATES AND WEST EUROPE II, 1992-2002 as well as

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29

the Petroleum Additives section of ALPHA-OLEFINS - WORLD MARKETS,1990-2002. He also conducted a global polyisobutylene market study andproprietary studies of market prospects for gasoline detergent additives. Heholds an A.B. Chemistry, Math and Biology, Nebraska Wesleyan University andan M.S. Organic Chemistry, University of Nebraska.

Dr. Norman F. Brockmeier, President, Oakwood Consulting, Inc.Dr. Brockmeier wrote the Polyolefin Technology section of ALPHA-OLEFINS -

WORLD MARKETS, 2000-2010 AND ALPHA-OLEFIN MARKET INTELLIGENCE

DATABASE. He also authored Chapter I - Polyolefin Technology ofPOLYOLEFIN COMONOMERS - WORLD MARKETS, 1995-2005. In addition tohis own consulting practice, Dr. Brockmeier is a chemical engineer with theProcess Evaluation Section in the Energy Systems Division at Argonne NationalLaboratory. He has over 25 years experience in industry, and is recognized as aleading authority on polyolefin process design and economics, recently in theemerging field of metallocene catalysis, with many publications and conferencelectures in these areas. He was codesigner of the first Amoco gas-phasemanufacturing process for homopolymer polypropylene resin, and part of thedesign team for a new gas-phase ethylene-propylene copolymer plant in Texas.He has also taught the capstone senior design course at Ohio State Universityand at the University of Texas. Dr. Brockmeier has a B.S. degree in chemicalengineering from the Massachusetts Institute of Technology. He is a member ofACS, AIChE, and the SPE, and is a registered professional engineer.

Michael Tepper, Research Associateauthored several of the Miscellaneous End Use sections of ALPHA-OLEFINS -

WORLD MARKETS, 2000-2010 AND ALPHA-OLEFIN MARKET INTELLIGENCE

DATABASE. He has conducted research in support of proprietary work andcontributes to CAHA’s newsletter, Agglomerations. Prior to joining CAHA, Mr.Tepper was a mathematician who worked as a senior computing assistant for theUniversity of Chicago, Graduate School of Business while obtaining a Bachelorof Arts degree in Mathematics. His background in statistics and his computerskills were invaluable in developing and implementing the electronic version ofthe new alpha-olefin study.

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HOW TO SUBSCRIBE

To subscribe to the study please contact CAHA at the address below.

Colin A. Houston & Associates, Inc.262 Eastgate Drive 323Aiken, SC 29803 USAPhone: 803-226-0350

Fax: 803-693-0707E-mail: [email protected]: www.colin-houston.com